Editing Income tax (section)

===Business profits===
Only net income from business activities, whether conducted by individuals or entities is taxable, with few exceptions. Many countries require business enterprises to prepare financial statements<ref>See, ''e.g.'', [http://www.companieshouse.gov.uk/about/gbhtml/gp2.shtml#ch4 UK requirements]</ref> which must be audited. Tax systems in those countries often define taxable income as income per those financial statements with few, if any, adjustments. A few jurisdictions compute net income as a fixed percentage of gross revenues for some types of businesses, particularly branches of nonresidents.